XML 45 R33.htm IDEA: XBRL DOCUMENT v3.10.0.1
Segment Information (Tables)
9 Months Ended
Sep. 28, 2018
Segment Reporting [Abstract]  
Segment Reporting Information, by Segment
The following table provides summary financial information by reportable segment (in thousands):

 
Three months ended
Nine months ended
 
September 28, 2018 (1)
 
September 29, 2017
September 28, 2018
 
September 29, 2017
Video
 
 
 
 
 
 
Revenue
$
73,344

 
$
84,155

$
224,300

 
$
231,876

Gross profit
41,937

 
48,283

126,721

 
126,776

Operating income (loss)
5,258

 
7,009

13,492

 
(7,774
)
Cable Access
 
 
 


 


Revenue
$
28,062

 
$
7,859

$
66,788

 
$
25,396

Gross profit
10,871

 
1,064

29,698

 
4,973

Operating income (loss)
395

 
(5,357
)
(578
)
 
(18,848
)
Total
 
 
 
 
 
 
Revenue
$
101,406

 
$
92,014

$
291,088

 
$
257,272

Gross profit
52,808

 
49,347

156,419

 
131,749

Operating income (loss)
5,653

 
1,652

12,914

 
(26,622
)


(1) The Company has historically employed an aggregate allocation methodology based on total revenues to attribute professional services revenue and sales expenses between its Video and Cable Access segments. Beginning in the fourth quarter of 2017, the Company prospectively changed to a more precise attribution methodology as the activities of selling and supporting the CableOS solution have become increasingly distinct from those of Video solutions. The impact of making this change in the three and nine months ended September 29, 2017 compared to the Company’s historical approach was a decrease in operating income of $2.7 million and an increase in operating loss of $5.9 million, respectively, from the Video segment and a corresponding decrease in operating loss of the Cable Access segment. The Company believes that the updated allocation methodology will provide greater clarity regarding the operating metrics of the Video and Cable Access business segments.

A reconciliation of the Company’s consolidated segment operating income (loss) to consolidated loss before income taxes is as follows (in thousands):
 
Three months ended
Nine months ended
 
September 28, 2018
 
September 29, 2017
September 28, 2018
 
September 29, 2017
Total segment operating income (loss)
$
5,653

 
$
1,652

$
12,914

 
$
(26,622
)
Amortization of warrants
(790
)
 

(1,185
)
 

Unallocated corporate expenses
(994
)
 
(10,050
)
(3,582
)
 
(18,825
)
Stock-based compensation
(5,433
)
 
(3,720
)
(14,202
)
 
(11,107
)
Amortization of intangibles
(2,087
)
 
(2,088
)
(6,281
)
 
(6,232
)
Income (loss) from operations
(3,651
)
 
(14,206
)
(12,336
)
 
(62,786
)
Non-operating expense, net
(3,237
)
 
(3,292
)
(9,190
)
 
(9,892
)
Loss before income taxes
$
(6,888
)
 
$
(17,498
)
$
(21,526
)
 
$
(72,678
)